Greed of Contractor and Walter Reed Official Demonstrates Ongoing Problems at Facility Where Attention to Medical Needs of Military Men and Women Should be Priority One

GREENBELT, Md. - Leon Krachyna, Jr., age 39, of Rockville, Maryland, pleaded guilty today to conspiracy to bribe a public official and defraud the Army of the honest services of its officials, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to the plea agreement presented to the court, from June 1999 to March 2002, Krachyna conspired with another individual (Co-Conspirator) to bribe a civilian contract specialist employed by the Army Medical Command (Public Official) to steer government contracts to companies in which Krachyna and the Co-Conspirator held an interest. The Public Official was responsible for facilitating the procurement of goods and services for the Walter Reed Army Medical Center.

In order to secure confidential bidding information and the Public Officials efforts to award the contracts to their companies, Krachyna and the Co-Conspirator agreed to kick-back 10% of the contract payments to the Public Official. On numerous occasions, Krachyna traveled to Walter Reed, where he made cash payments to the Public Official. Additionally, Krachyna and the Co-Conspirator paid thousands of dollars in insurance premiums and loan payments on a truck they provided for the Public Officials use. Krachyna admits that the payments made to the Public Official were between $10,000 and $30,000.

The Public Official was instrumental in awarding several contracts worth up to $1.4 million to companies held by Krachyna and his Co-Conspirator. In June 1999, Walter Reed awarded one of the companies held by Krachyna and the Co-Conspirator a contract worth more than $205,000 to plant and remove trees at Walter Reeds facilities, pursuant to which the company received $85,000. In December 2001, Walter Reed awarded the company another contract worth more than $245,000 for the base year, with four option years worth about $1.2 million, to move furniture and records. The company received more than $106,000 under this contract. The Public Official was the contract specialist assigned to these contracts.

Kevin R. Roach, age 45, of Fredericksburg, Virginia and Louis Pisani, Jr., age 40, of Silver Spring, were indicted on October 5, 2006 in connection with the alleged conspiracy to influence contracting at the Walter Reed Army Medical Center.

Krachyna faces a maximum sentence of five years in prison, followed by three years of supervised release and a fine of $250,000. U.S. District Judge Peter J. Messitte did not schedule a date for sentencing.

United States Attorney Rod J. Rosenstein praised the investigative work performed by Federal Bureau of Investigation, the Department of the Army, the Internal Revenue Service - Criminal Investigation and the Montgomery County Fire Marshal's Office. Mr. Rosenstein thanked Assistant U.S. Attorney Michael R. Pauzé, who is prosecuting the case.